Understanding Annual Property Tax
Since the beginning of civilization property taxes have been a major source of revenue for most governments. Oliver Wendell Holmes said ‘Taxes are what we pay for a civilized society.’
BC Assessment is responsible for assessing over 2 million properties in British Columbia as of July 1 each year.
The assessment of your property is calculated using the market value as of July 1st of the preceding year. The appraisers take into account various unique characteristics of your property, such as the location, view, size, age, and features like garages, carports, decks, and pools. Additionally, they consider comparable sales prices and other real estate market information, including recent sales of properties with similar attributes to yours.
A rise in your assessment doesn’t automatically translate to higher property taxes. The adjustments in property taxes are typically influenced by how your assessment change compares to the average assessment change in your community.
Exemptions from Annual Property Tax
Exemptions may be whole or partial; that is, they may exempt all or only part of a property from taxes, or they may provide relief from all or only some property taxes. In all cases, specified criteria such as ownership, use, location, or property type, must be met before an exemption applies. In some cases, the discretion to grant or deny an exemption lies with the taxing jurisdiction.
Examples of exemptions providing partial relief from property taxes:
- A farmer’s dwelling in a rural area is exempt from provincial general property taxes, but subject to school taxes
- Up to $10,000 of the assessed value of improvements in Class 4 – major industry, Class 5 – light industry and Class 6 – business and other is exempt from all property taxes: Industrial and Business Property Exemption Regulation, made under the Community Charter.
- 50% of the assessed value of a parcel of land in Class 9 – farm is exempt from school taxes
For more information visit BC Assessment website.
Defer your Annual Property taxes
If you find it challenging to pay your property taxes one year, you may be eligible to defer them through one of the following property tax deferment programs:
- Regular Program
- 55 or older during the current year
- A surviving spouse of any age
- A person with disabilities
- Families with Children Program
- you’re a parent, stepparent or financially supporting a child
You must also meet applicant, property and equity qualifications to be eligible and defer the tax.
Check our other blogs under Real Estate 101 – that might give you answers about buying or selling a home.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.
